Weekly Grain Market Comments

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Weekly Market Comments: 5/12/10

China's additional exports have historical significance

Yesterday's additional corn purchases by China along with the USDA's reduction of 200 million bushels in U.S. domestic ending corn stocks have overridden (by 25 cents) the "more than adequate" view of corn supplies we shared two weeks ago.

The USDA did show an increase in global corn supply but the potential for even additional China business can be a game changer while encouraging outside fund buying. One item that is not reflective of recent cash business is basis levels have not responded accordingly. For the market to maintain recent buoyancy, we see continued need to feed it with demand factors.

Learn More: View Highlights from the USDA Report at NCGA.com

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